Technical Field
The present invention relates to battery storage systems and more particularly optimal battery storage systems to reduce the cost of electricity at a customer site.
Description of the Related Art
The cost of electricity for a facility can vary greatly based on location, operation times, and utility provider. The location can affect the need for electricity to heat or cool the facility, with warmer climates requiring more electricity needed for cooling in the summer months. The operation times of the facility affect the need for electricity since lights are needed when the facility is operating and more lights will be needed when operating at night. Utility providers affect the cost of electricity since they set the price for which the facility purchases the electricity, but utilities have different prices for peak hours, like during the hot day where more electricity is needed to cool a facility, versus off-peak hours, where demand is less because being after dark or outside a normal work day.
Utility providers can charge both a time of use (TOU) rate and a demand charge (DC) for electricity they provide. The TOU rates are the time dependent charges levied against the consumption of electricity, and the DC charge goes toward generation and distribution costs. Utility providers may also offer plans for discounted rates to facilities that sign-up to allow the utility provider to have the facility reduce electricity use during certain peak demand times. Some utility providers also offer discounts to facilities that have in-house energy generating systems.